India has cut the windfall tax on exports of diesel and aviation turbine fuel with effect from October 1, according to a government order issued on Wednesday, while leaving the levy on petrol exports unchanged.
The duty on diesel exports drops to Rs 16 per litre from Rs 20, while the levy on aviation turbine fuel exports falls to Rs 10.5 per litre from Rs 15, according to the order reported by Reuters. The duty on petrol exports remains at Rs 0.5 per litre.
The finance ministry notification also kept the existing duty rates on petrol and diesel cleared for domestic consumption unchanged.
The government imposed the export duty on diesel and aviation turbine fuel on March 27, 2026, amid escalating tensions in West Asia, and has revised the rate every fortnight since. Petrol was brought under the levy from May 16, according to the Hindu BusinessLine, which cited PTI.
The windfall tax was introduced to ensure domestic availability of petroleum products by disincentivising exports while global crude prices were elevated, and to prevent exporters from reaping undue gains from the difference between domestic and international fuel prices.
Since its introduction in late March, the export levy has been reviewed roughly every fortnight, with the government using the mechanism to respond to movements in global crude prices amid the West Asia crisis. The October 1 revision is the latest in that sequence, and refiners will now face lower duties on diesel and aviation turbine fuel shipments for the next fortnight.
Sources:
reuters.com
thehindubusinessline.com
The duty on diesel exports drops to Rs 16 per litre from Rs 20, while the levy on aviation turbine fuel exports falls to Rs 10.5 per litre from Rs 15, according to the order reported by Reuters. The duty on petrol exports remains at Rs 0.5 per litre.
The finance ministry notification also kept the existing duty rates on petrol and diesel cleared for domestic consumption unchanged.
The government imposed the export duty on diesel and aviation turbine fuel on March 27, 2026, amid escalating tensions in West Asia, and has revised the rate every fortnight since. Petrol was brought under the levy from May 16, according to the Hindu BusinessLine, which cited PTI.
The windfall tax was introduced to ensure domestic availability of petroleum products by disincentivising exports while global crude prices were elevated, and to prevent exporters from reaping undue gains from the difference between domestic and international fuel prices.
Since its introduction in late March, the export levy has been reviewed roughly every fortnight, with the government using the mechanism to respond to movements in global crude prices amid the West Asia crisis. The October 1 revision is the latest in that sequence, and refiners will now face lower duties on diesel and aviation turbine fuel shipments for the next fortnight.
Sources:
reuters.com
thehindubusinessline.com
